The HS code is the “common language” of global trade: a glance at an 8-digit string tells a customs authority anywhere in the world what the product is, what duty rate applies, and what regulatory controls attach to it. For businesses importing into or exporting from Vietnam, understanding HS codes correctly is the first — and most important — step toward accurate declarations, correct duty payments, and avoiding disputes with customs.
1. What is an HS code?
HS stands for the Harmonized Commodity Description and Coding System — a global goods-classification system developed and maintained by the World Customs Organization (WCO) under the international HS Convention. Most countries in the world, including Vietnam as an HS-applying member, use the HS as the foundation for customs tariffs, trade statistics, and import-export management.
The key point to remember: an HS code describes the nature of the goods — their composition, function, and working principle — not the commercial name a business gives its product.
2. Vietnam’s import-export goods nomenclature
Vietnam’s import-export goods nomenclature is issued with Circular No. 31/2022/TT-BTC (issued 8 June 2022, still in force). It fully follows the HS 2022 Nomenclature at the 6-digit level and the ASEAN Harmonised Tariff Nomenclature (AHTN) 2022 at the 8-digit level, and has been applied in practice since 30 December 2022.
Under the nomenclature issued with Circular 31/2022, Vietnam’s classification system comprises: 21 sections, 97 chapters, 1,228 headings (4-digit level) and 1,084 subheadings (6-digit level), detailed into 11,414 tariff lines at the 8-digit level — 601 more lines than the previous 2017 nomenclature.
3. Structure of Vietnam’s 8-digit HS code
Vietnam’s 8-digit HS code is built from four “layers” of two digits each:
- First 2 digits: the chapter number;
- Next 2 digits: the heading within the chapter (4-digit level);
- Next 2 digits: the international HS subheading (6-digit level) — uniform worldwide under the HS Convention;
- Last 2 digits: Vietnam/ASEAN’s detailed national subheading (8-digit level) — per the AHTN, defined by each country or bloc.
In other words: the first 6 digits are uniform globally; the last 2 digits are national/regional. A practical consequence: when comparing Vietnam’s HS code with the export country’s HS code for the same goods, the two may match at the first 6 digits but differ at the last 2 — that is normal, not an error.
Structural illustration (X denotes digits, not a specific code): XX – XX – XX – XX, i.e. chapter – heading – international subheading – national subheading. For an actual product, businesses must look up the full 8 digits in the nomenclature issued with Circular 31/2022 — never “guess” a code.
4. The six General Rules of Interpretation (GRI)
Classification must follow the six General Rules of Interpretation in Appendix II issued with Circular No. 31/2022/TT-BTC. In summary:
- Rule 1: section and chapter titles are for reference only; classification is determined by the terms of the headings and relevant section/chapter notes;
- Rule 2(a): incomplete or unassembled goods having the essential character of the complete article are classified as the complete article;
- Rule 2(b): covers mixtures and combinations;
- Rule 3: where goods are classifiable under two or more headings — 3(a) the most specific heading, 3(b) classification by essential character, 3(c) the heading occurring last in numerical order;
- Rule 4: classification by the most akin goods;
- Rule 5: cases and packing materials;
- Rule 6: at subheading level, classification is determined by comparing only subheadings at the same level.
Beyond the six rules, section notes and chapter notes carry the same legal weight as the rules — always read the notes before choosing a code. A great many HS disputes stem from skipping the exclusion notes.
5. Why HS codes matter for businesses
- Duty rates: export duty, import duty (preferential, MFN, special preferential), VAT, and special consumption tax are all tied to the HS code;
- Regulatory controls: licences, specialised inspections, and prohibited/restricted lists are all looked up by code;
- FTA tariff preferences: each free trade agreement has its own commitment schedule by HS code;
- National trade statistics;
- Origin determination: for example, the change-in-tariff-classification (CTC) criterion in rules of origin.
An interesting detail illustrating the “first-6-digits-are-global” nature of HS codes: under Clause 8, Article 15 of Circular No. 33/2023/TT-BTC (effective 15 July 2023), a difference in the goods code on a certificate of origin is accepted as a “minor discrepancy” where the codes match at the 6-digit level and differ only at the 8-digit level.
Conversely, a wrong HS code means wrong duties: businesses may face recovery of tax arrears, tax assessment, and administrative penalties under Decree No. 169/2026/ND-CP (effective 1 July 2026, replacing Decree No. 128/2020/ND-CP).
6. Nomenclature updates: always use the version in force
The HS Nomenclature is reviewed periodically by the WCO (2007, 2012, 2017, 2022 editions); Vietnam implements each edition through circulars — Circular 65/2017/TT-BTC for HS 2017 (now replaced) and Circular 31/2022/TT-BTC for HS 2022 (current). The iron rule: businesses must consult the nomenclature in force at the time of declaration, never an old nomenclature for a current shipment.
FAQs
Is Vietnam’s 8-digit HS code the same as the export country’s?
The first 6 digits match (globally uniform under the HS Convention); the last 2 digits may differ because each country defines them nationally (Vietnam follows the AHTN). Never mechanically copy the HS code supplied by a foreign supplier.
How does an HS code differ from a business tax code?
An HS code classifies goods (describing the nature of the product); a tax code/business code identifies the organisation. They serve entirely different purposes.
The information in this article is for reference only and does not constitute legal advice. To determine the HS code for a specific product, consult the nomenclature issued with Circular 31/2022/TT-BTC or seek professional advice. Contact FLAT Law Firm: contact us here.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.